How Much Do Solar Panels Cost in North Carolina in 2024?

Did you know that North Carolina ranks 4th in the nation for total installed solar capacity?

The Tar Heel state has seen tremendous growth in solar energy adoption, with over 7,100 MW of solar installed as of 2021.

Going solar not only helps reduce your carbon footprint but can also lead to significant cost savings on your electricity bills.

In this comprehensive guide, we’ll break down the costs of solar panels in North Carolina for 2024, so you can make an informed decision about switching to clean energy.

Key Takeaways

• Average Cost: The average cost of solar panels in North Carolina is around $2.66 per watt, with a typical 5 kW system costing approximately $13,306 before incentives.
• Incentives: Federal and state incentives can significantly reduce the upfront cost, making solar more affordable.
• Long-term Savings: Solar panels can offer substantial long-term savings on your electricity bills, with a payback period of around 6-8 years.
• Factors Affecting Cost: System size, panel type, installation type, and local labor costs are key factors that influence the overall cost.
• Energy Use Calculation: Understanding your energy use is crucial for determining the right system size for your home.

How Much Do Solar Panels Cost in North Carolina in 2024?

In 2024, the average cost of installing a solar panel system in North Carolina is approximately $2.66 per watt. For a standard 5 kW system, this translates to about $13,306 before any incentives are applied.

Detailed Breakdown

Cost Per Watt: The average cost per watt for solar panels in North Carolina is $2.66, which is slightly below the national average of $3.33 per watt.

System Costs: Here’s a breakdown of the average costs for different system sizes before and after the federal investment tax credit (ITC):

System Size	System Cost (Before ITC)	System Cost (After ITC)
3 kW	$7,983	$5,588
4 kW	$10,645	$7,451
5 kW	$13,306	$9,314
6 kW	$15,967	$11,177
7 kW	$18,628	$13,040
8 kW	$21,289	$14,902
9 kW	$23,950	$16,765
10 kW	$26,611	$18,628

 

As you can see, while a 5 kW system costs around $13,306 before incentives, doubling the system size to 10 kW effectively doubles the price to $26,611. However, larger systems also provide more significant savings on your electricity bills over the long term.

Larger systems have higher upfront costs but generate more electricity, leading to greater lifetime savings. Homeowners should size their system based on their energy needs and budget.

In North Carolina, residential solar installations typically range from 5 kW to 8 kW. The ideal size depends on factors like your electricity usage, available roof space, and budget.

Real Examples/Case Studies:

Let’s compare two households in Raleigh, NC with different energy needs:

• The Smith family has a 1,500 sq. ft. home and installs a 5 kW system for $9,314 after the federal tax credit. Their system generates about 7,000 kWh annually, covering most of their electricity usage.
• The Johnson family has a larger 2,500 sq. ft. home and higher energy demands, so they opt for an 8 kW system at a net cost of $14,902. Their system produces around 11,200 kWh per year, enough to completely offset their electricity bills.

The size of your solar panel system has a significant impact on the overall costs and savings.

By examining the average prices for different system sizes in North Carolina and considering your own energy needs, you can determine the ideal solar PV system size for your home and budget.

Consult with a local solar installer for a customized estimate based on your specific circumstances.

Are Solar Panels Worth It in North Carolina?

Despite the upfront cost, solar panels are a worthwhile investment for most North Carolina homeowners. Here’s why:

• Long-term savings: Over a 20-year period, the average savings for a 5 kW system in North Carolina is around $18,594 after accounting for the initial cost. This assumes an electricity rate of 11.24 cents per kWh and an annual increase of 2%.
• Payback period: The typical payback period for solar panels in North Carolina ranges from 9 to 13 years, with an average of about 12 years. This means that after 12 years, your cumulative electricity savings will have offset the original cost of your solar system.
• Cost per watt: At an average of $2.66 per watt as of May 2024, the cost of solar in North Carolina is lower than the national average of $3.00 per watt. Combined with the state’s abundant sunshine, this makes going solar an attractive option for reducing energy costs.

In addition to long-term savings on electricity bills, North Carolina residents can take advantage of incentives like the 30% federal tax credit and net metering to maximize their solar investment.

Over a 25-year period, the levelized cost of solar energy in North Carolina is around 5.1 cents per kWh, compared to an average utility rate of 22.2 cents per kWh. This demonstrates that solar is a significantly cheaper way to power your home in the long run.

What Affects the Cost of Solar Panels in North Carolina?

Here are some key factors that affect the cost of solar panels in North Carolina:

1. System size – Larger solar panel systems with more panels will cost more overall, though the cost per watt may be lower for bigger installations.
2. Solar panel type – Monocrystalline panels are more efficient but also more expensive than polycrystalline panels. High-efficiency panels cost more per watt.
3. Installation costs – Labor costs for the installation depend on the complexity of the job, roof type, any structural issues that need to be addressed, and the installer’s rates.
4. Additional equipment – Costs increase if adding components like batteries for energy storage, electric vehicle chargers, or solar monitoring systems.
5. Local incentives – The federal solar tax credit reduces costs by 30%. North Carolina also has a property tax exemption for solar. Duke Energy offers a rebate of up to $9,000 for solar + battery systems. Check our full guide on North Carolina incentives and rebates to maximize your savings.
6. Interconnection costs – Connecting the solar system to the utility grid has associated costs that vary by location and utility company.
7. Permitting and inspections – Local permitting requirements and inspections add to the total cost of going solar.

How to Calculate Your Energy Use

Here are the key steps to calculate your energy consumption and estimate your potential savings by going solar:

Determine your current energy usage

1. Look at your electricity bills for the past 12 months. Add up the total kilowatt-hours (kWh) consumed and divide by 12 to get your average monthly usage.
2. For a more precise estimate, add up your kWh usage for an entire year and divide by 365 to get your daily average.

Estimate your future energy needs

1. Consider if your electricity usage is likely to increase or decrease in the future based on changes in household size, new appliances, electric vehicles, etc.
2. Many homeowners aim to offset 100% of their usage with solar, but you can start with a smaller system that offsets a portion of your bill.

Calculate the size of the solar system you need

1. Divide your annual kWh usage by the production ratio for your area to determine the kW size of the system needed. The production ratio ranges from 1-1.6 depending on your location.
2. As a rule of thumb, 1 kW of solar panels produces about 1,000-1,600 kWh per year. So a 5 kW system would offset 5,000-8,000 kWh of usage.

Determine the cost of your solar system

• The average cost of a residential solar system is around $3-4 per watt before incentives. So a 5 kW (5000 watt) system would cost $15,000-$20,000.
• Factor in the 30% federal tax credit and any state/local incentives to calculate your net cost.

Estimate your solar savings

1. Multiply your system’s annual kWh production by your current electricity rate to determine your yearly savings.
2. For example, if your 5 kW system produces 7,000 kWh and you pay $0.13 per kWh, you’d save $910 per year on electricity bills.
3. Solar panels are warrantied for 25-30 years, so multiply your annual savings by 25 to estimate your lifetime savings. In this example, that’s $22,750 in savings over 25 years.

By analyzing your past electricity bills, accounting for future usage changes, and factoring in your location’s sunlight and solar costs, you can calculate how much energy your solar panels will produce and how much you can potentially save over the 25+ year lifespan of your system. Talking to a local solar installer can help refine these estimates for your specific home.

Conclusion

Going solar in North Carolina can be a smart financial decision for homeowners looking to reduce their energy costs and environmental impact. With an average cost of $2.66 per watt in 2024, a typical 5 kW system will cost around $13,306 before incentives, or $9,314 after claiming the 30% federal tax credit.

While upfront costs may seem high, the long-term savings are substantial, with an average of $18,594 over 20 years for a 5 kW system. Factors like panel efficiency, installation type, and local incentives can impact your overall costs, so it’s important to carefully consider your specific needs and budget when designing your solar PV system.